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Your World With Neil Cavuto

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Us 14, Coburn 9, America 8, Mcconnell 5, Washington 4, Murdoch 3, Chrysler 3, United States 3, Norisk 2, Boehner 2, Bill Clinton 2, Verizon 2, Perry 2, Virginia 2, Dc 1, Celebrex 1, Fbn 1, Dealbreaker 1, Bradley 1, Clinton 1,
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  FOX News    Your World With Neil Cavuto    News/Business. Money tips  
   from Wall Street. New. (CC)  

    July 19, 2011
    4:00 - 5:00pm EDT  

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on word a new debt plan is in the mix. welcome, everyone, i am here for neil cavuto in "your world," not one, two, but throw plans to raise the debt ceiling on making their way through congress but only one is getting the president's praise. and it is not the one that balances the budget. a house vote on that is hours away. and it is not the backup plan, either. yet work is underway on that but another plan released by the gang of six, that would slash the deficit by adding new taxes and reducing others. the guy would bothed new life into the plan, oklahoma senator coburn. senator, let me ask you about the tax element. i am told you would reduce
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income tax rates. >>guest: that is accurate. >>stuart: to three brackets and corporate tax rates. >>guest: that is correct. >>stuart: that will make it attractive conservatives. what other tax angles? >>guest: this is no question the alternative minimum tax will be permanently eliminated. that is another tax angle. as the rates come down and the tax expenditures and tax credits come out, this will be generated through economic gains up to $1 trillion worth of dynamic gains. and $1 trillion worth of the benefits will go to reduce the deficit. after that, the money will go to lower tax rates additionally. >>stuart: there is plugging of tax loopholes, is that correct? >>guest: yes, that is the elimination of tax credits and
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expenditures and we have $1.1 trillion of those a year and this takes $100 billion of those away net-net a year. >>stuart: the president was optimistic about this plan. and he was saying it is bradley -- bradley consistent and i am surprised with the reduction in income tax rates does he go along with that? >>guest: it is paid for by taking away deductions so in essence for certain high tax income they pay more and certain high tax people pay less but it depends on what the committees do and how the mix of that is depending whether you pay more or you pay less. but on net i would say if i were talking to conservative oklahomans it is a wash overall on tax deductions right if you. but the future would be that after you do this first set of reductions of rates, the dynamic
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effect and the income coming off of that will lower the rates further so you will ultimately see net-net tax cuts to individuals in the country. >>stuart: and we turn to the other side, the spending. do you have specifics on that. >>guest: there is $500 billion locked in initially. and there is another $2.2 trillion that will come through a process of forcing the committees to come to a certain fixed result, $500 billion of that through health care reductions and mandatory programs and i can't give you all the details right now but significant spending reduction that starts us on the way of getting ahead the curve. it is not going to solve all of our problems but it starts us down that is a total package of $3.7 trillion over 10 years. >>stuart: anything to do with social security any changes there at all? >>guest: it does. the changes are, we may force
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the committees to come to a resolve to make social security viable for the next 75 years and also require the congress every 10 years after that continue to keep it at 75 years. and it could be they don't is to do anything more than to do this and that comes in at the last part of this bill and the reason that is important, and any money that is saved in social security goes right back to social security, totally separate. so there is no saving in the $3.7 trillion that has anything to do with social security. savings from reforming social security goes right back to social security. >>stuart: this is a burst of optimism when this news reached us. is this a breakthrough? >>guest: it is a way that will allow everybody to come together, everybody can say, i got something, and everybody can say i gave something. >>stuart: can this be legislate and voted on before the august 2nd deadline? >>guest: that is the difficult
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question. this is some resistance to that now. my pleasure would be that we work like heck so we get something like this done before the august 2nd deadline. >>stuart: gang of six or do you make it the gang of seven? >>guest: the gang of six without me was the gang of five. >>stuart: we appreciate you being with us, sir, senator coburn. the president likes it but will conservatives go for it or will the tax element in the gang of six plan be an instant dealbreaker? first reaction from the president of the club for growth. chris, i am sure you heard what senator coburn told us, a reduction in income tax rates consolidation interest throw brackets and a reduction of corporate tax rates, as well. now, you are a conservative. i resume you would go along with that tax element in the gang of six plan. >>guest: well, that alone sounds good and we have a long
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and productive relationship with senator coburn and we have a lot of respect and confidence in him so it is comforting to hear him but the devil is in the details. we bring some level of skepticism until we understand the details as senator deminute said, he has never seen a bipartisan bill that russia risks -- shrinks the size of government department department. -- size of government afternoon. >>stuart: any reduction of income tax rates must be a husband and a negative for democrats and the administration? >>guest: well, lowering the marginal rates and the corporate rate are pro-growth moves we support. we will see what kind of revenue raisers they have and how certain the spending reductions are. there are promises but we are
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not interested in promises but what is delivered to make sure we get on a fiscal paths that is sustainable. >>stuart: you prefer the cut, cap and balance bill that will be voted on in a couple of hours in the house, and i have to say, sir, that is almost certainly going down to defeat in the senate. >>guest: this started in general and everybody said this is no way it could get to the house and it would not get the republican leadership and now mcconnell and speaker boehner have endorsed it and signed on to it, so, it has come a long way. we have not given up. it is not a yet of getting republican or democrat sport -- support but the american people's support. the cap and balance plan is the only plan that recognizes reality and gets us on a permanent fix to make sure that congress is handcuffed to balance a budget. they have proven for generations
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they cannot balance a budget without outside limitations on their spending. and a balanced budget amendment does that. >>stuart: speaker boehner in reaction from the news of the gang of six plan said he was focused on the cut, cap and balance legislation, so speaker dinner is focused on that, but i draw your attention to the mcconnell plan, the other backup plan. you don't like that, do you? >>guest: the though we are talking about, it is the worst plan because it results in the republicans opening the door and asking president obama to walk through and raise the debt ceiling with no fundamentallal reforms, no spending reductions, no balanced budget amendment, and trying to blame him for it and if leadership mcconnell wants to believe he can open the door, let president obama walk through it and the republicans finger prints are not on the door he is mistaken, that is a smoke and mirrors legislation, a brilliant move inside the
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beltway but it would be very not appreciated by real members outside the beltway. >>stuart: thank you for joining us, president of the club for growth. >> this administration i say bluntly is the greatest wet blanket to business and progress and job creation in my lifetime. >>stuart: the c.e.o. of wynn resorts not holding become words on how he things the president is handling the economy. reaction from the republican governor of virginia who just announced today his state ended the fiscal year with a $311 million surplus. welcome to the program, governor. i have to ask for your reaction to the comments of steve wynn. do you grow with the views of the president and his economic policy? >>guest: i agree this president over the last couple of years has not focused on the
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central issue facing america which is creating a system where the free enterprise system can grow and expand and we can be more competitive in the global economy. they micromanaged the free enterprise system and overtax asked everregulated and wonder why we are not growing we have done the opposite in virginia focusing on job creation and we are now the third lowest state in unemployment east of the mississippi and that is why jobs are coming back. >>stuart: are his views wide-spread not executive suites of america? >>guest: absolutely from the entrepreneur to the large businesses they do not see a coherent economic strategy from the administration that understands the basic principles. if you keep taxes and regulation and litigation low you have strong right-to-work laws and great long term research and development in universities you will grow and we do not see a
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lot coming from the administration that respects that. it is the opposite. more unionization, pore litigation, more taxation and more regulation the opposite of behalf we need. >>stuart: $311 million in this fiscal year. fast, governor, how did you do it? >>guest: we invested in things that create jobs and the jobs are become so sales tax and income tax revenues are up. we did not raise taxes, focused on long term investment and transportation and higher education and now it is paying off. >>stuart: but you have two advantages, you are close to washington, dc, and, number two, you can only run and stand for one term so you do not have to worry about being re-elected, isn't that an advantage? >>guest: there is freedom in that. i have 2 1/2 years left. on the federal numbers the fact we are close to badded --
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washington, dc, that is helpful but 95 percent of our job growth is not related to the federal. >>stuart: and governor perry of texas, he is going to run, isn't he, governor? >>guest: well, i talked to the governor a few times and i think his--. >>stuart: he is going to run, incent he? >>guest: i will say he has the best job creation record in america and he has tea party and evangelicals interested in the campaign so he would be a good unifier and a tough guy. >>stuart: the guy that you support? >>guest: no, i support a current or former governor and i will not make decisions until after our elections in november but i think the governor is the one we until nature because they balance the budget and do the opposite of the delay that we have in washington, dc, now. so, perry is a good choice. >>stuart: and he is running, isn't?
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>>guest: you have to ask him. he is close, i think, but he would be a good leader and a good choice and good alternative to president obama who is doing the opposite of what we need to create jobs. >>stuart: thank you. drama unfolding as the chairman and c.e.o. of news corporation murdoch testifies and is rushed by a protester.
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>>stuart: news corporation shares up 5.5 percent after murdoch testifies before parliament in the phone hacking scandal. and now, like from london. greg? >>greg: the chairman and
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c.e.o. murdoch and his son appeared before the committee of parliament over allegations of wrongdoing at the "news of the world." among the charges the phone mails of hacked of celebrities and missions and victims of crime and terrorism and soldiers. and murdoch said this was the most humble day of his life and said he was let done by people he trusted ling to the closing of that paper in question. take a listen. >> we are ashamed of what happened. so we brought it to a close. >> people lied to you and to the readers. >> we had broken our trust with our readers. not me but the employees.
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>> more drama two hours into the testimony when a protester lunged at rupert murdoch and he was hit by that, but saved by his wife, who was sitting behind him and jumped up and swatted the guy down and he was taken away by authorities. later on in the day, another separate hearing from the former editor of "news of the world," and head of the british newspapers, she, too, answered questions from members of parliament and, she, too, denied knowledge at the time of any wrong doing including the paying of britishs to british police officers. take a listen. >> i have never paid a policeman myself. i have never sanctioned or knowingly sanctioned a payment to a police officer. >>greg: finally the word from james murdoch equally contrite. we are very sorry to the victims of hacking, it is a great regret
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and not up to our standards. we are determined to make it right. probably not the last word on all of this. back to you, stuart. >>stuart: bill clinton says he would bypass congress to do this. and now, chrysler is taking action over union workers smoking marijuana during lunch break. stay tuned. host: could switchio really save you 15% or more
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>>stuart: chrysler suspending five workers smoking pot on lunch break during a lunch. chrysler said all nine have been identified and suspended without pay as the investigation
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continues. worried about your job security? go to work for uncle sam. a new report revealing the odds of hearing "you're fired," are slim to nothing, more like 'til death do us part. and now, byron york will explain. can't fire them, can't lay them off they die on the job. that is true, isn't it? >>guest: well, the study found, in the private sector, about 3 percent of employees are fired or laid off each year for poor performance. in the federal government it is half of 1 percent, a huge, huge difference. almost impossible. half a million federal workers make $100,000 a more and they have 99.82 percent job security so it is a huge, huge factor. >>stuart: that gives new
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meaning to the "job for life," saying, so the federal government ends up with, surely, noncompetitive workers. if you cannot get fired for poor performance, you end up with a noncompetitive workforce that is actually, dare i say, of lower quality, than a similar type of workforce in the private sector. >>guest: in cut in a given year with a large organization you hire a lot of people and some do not work out. and in the private sector buildly they are fired and it is unhappy situation, but that is what happens every single year. but in the federal government it is so difficult i was speaking to a senator today talking about budget cuts, and republicans who would like to reduce the size of the work force have given up on the idea of actually firing anybody. or laying them off. they talking about plans to reduce the workforce through attrition, the senator was talking, saying, well, maybe we can hire one new worker for
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every three who leave but the idea that underperforming workers are let go is not possible. >>stuart: not present in government thinking. all right, bring ron, former bill clinton said he would use the 14th amendment to raise the debt element to congress doesn't, if he were president now, like all immigrants i carry around my copy of the constitution so i am looking at the 14th amendment section four that says the public debt of the united states including pensions shall not be questioned. president clinton says that would give president obama authority to raise the debt limit. what do you say? >>guest: that is an idea bouncing around on the left for a couple of weeks, 14th amendment was the post civil war amendments had to do with paying off civil debt and most experts believe it is not relative haven't to this situation. certainly the leaders of the republican party in congress believe it is absolutely not relevant and the president does not have the power to unilaterally raise the debt
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ceiling and if the president obama the only man who could try this attempted this, there would be resistance and not just from republicans in congress. >>stuart: byron thank you for joining us. you heard a moment ago on this program that senator coburn told you why he is supporting the gang of six debt plan. what about his colleague, republican senator john thune? me joins us. accept, good to see you. now, i questioned senator coburn about some of the tax elements in the gang of six plan. and it emerges he would consolidate income tax rate interests three brackets. lower brackets and reduce corporate income taxes and i thought that was a huge attraction for conservatives. do you find that attractive? >>guest: absolutely. that is one of the best selling
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features of their plan to reduce marginal income tax rates on businesses and individuals which we believe is going to be key to get the economy going and to get jobs created in this country. so, had are elements of that plan that we all are reviewing and clearly like anything the devil is in the details and all us want to know about the particulars. that is certainly something that we believe would be very, very important if we are talking about economic growth and job creation and that is what most members want to see us focused on. >>stuart: and there would be $500 billion in immediate spending cuts attractive to most conservatives. >>guest: it would and overall, in the ten-year period they find 3.7 trillion in deficit reduction at least according to the current figures. so there are cuts immediately and cuts over the duration and tax reforms you mention so there are various things that will
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attract conservative support. we will see as people have an opportunity to review the details how the reception is. >>stuart: you were in the room when the details of the plan or the shape of the plan was unveiled. what was the reaction from democrats? >>guest: mostly positive. a lot of people are looking for something to be for and there will be a vote in the house of representatives on cut, cap and balance which we will vote on in the senate which is more representative of where most conservatives would lick to come down but there was a favorable response this morning among the 40 or so senators in the room when i was there to this gang of six proposal. people like it fore different reasons but it is meeting a favorable response. >>stuart: i was surprised to hear president obama come out and say the plan was broadly consistent with early attempts at a deal. and he sounded as? he was broadly in favor of it and that surprised me. i was very surprised to hear the
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president of the united states who always wanted higher tax rates supporting a plan which has lower income tax rates and lower corporate rates. >>guest: i was surprised. why necessity if he has locked closely. he assumed there are revenue loophole closures this there but those are counter balanced by the rate reductions which result in a net tax cut in this plan. so that is something that many republicans are very receptive to actually doing something to lower rates and, at the same time, you are closing loopholes. that is something that overall can be embraced by a last republicans. we will see. the details are just coming out. >>stuart: so we have three plans, the gang of six plan, the mcconnell and cut, cap and
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balance. you would go with cut, cap and balance although you know it is not going to get through the senate. >>guest: i with be for that because i think we have fundamentally a spending problem. i don't think this is a revenue issue but it is a spending issue. we need to deal with cutting spending today and capping it in the outyears and putting in place a mechanism that imposes the discipline that has been lacking in washington and make sure that in future years we are battling our budget and living in our means. that being said, we will see how it votes. it will emerge from the house of representatives and meet stiff resistance from democrats in the senate but i we like to see it debated and i hope we get a good, strong, vote and that is my preference. then we will see what happens after that. there are many parts to this right new. >>stuart: senator thune, thank you for joining us. uncle sam just hitting up the oil reserve. so why aren't gas prices going
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gas prices. is this a big worry? and now, my guest is joining me. can we get the unemployment rate by low 9 percent if gas is close to four bucks a gallon? >>guest: it will be tough. it makes it more expensive to business to run business when it comes to shipping businesses and the industrial machine of the united states, and, really, the global industrial machine so that is, really, tough, and a balancing act they have been trying to play and obama has been trying to play and they are not successful. >>stuart: is gas prices the mover to slowing the committee down? >>guest: there are so many movers, it is just one of the of -- movers and if you look at our economy, the unemployment is a big factor and housing, although we have better numbers they are not where they need to be, and there are a ton of factors but it does not help because the hard gins shrink and you can
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only subsidize the higher gas prices so long and they are passed on to the business owner and the consumer. >>stuart: this wasn't supposed to happen. we released oil from the strategic petroleum reserve and we are supposed to drive oil prices down and get prices down and it did not happen. i believe the national argue is now close to $3.70 for regular. this was not supposed to happen? >>guest: well, it wasn't at all. and a lot of people thought it would back foyer because it was just a band-aid. it is a temporary solution to a problem that hasn't been solved for the past 30 years. go back to carter he said we would stop our dependence on foreign oil and it has doubled. we did not have enough of an alternate to substitute for oil so when we have issues where demand is greater than the supply you can have short term bond aids of releasing supply,
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but, then what? >>stuart: we have all this bad news on the economy, are we on the verge of a double dip recession? >>guest: you know ... we are always on the november of a double dip but when we are, more stimulus comes in so we have come to the point where bad news is good news. if the economy slows down too much, the fed steps in and stimulates. if the committee resubjects you have true demand in the market and that continues the demand for crude. either way, we are in a pickle. commodity prices will continue to prize because there will be some kind of stimulus either organic for growth or government stimulus for growth. >>stuart: but we are bumbling along. bumbling along. >>guest: i grow with you. i grow with you. >>stuart: they have cable tv. x box. dishwashers. and they are poor.
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and 78 jerks have air conditioning. and 63 percent have cable tv. and 54 percent have cell phones and 48 percent have a coffee maker. i am not surprised. and 38 percent have a computer. and 32 percent have more than two tvs and 25 percent have a dishwasher. this is very different from what it was just a few years ago. >>guest: no, actually, what you see is that the living standards of the poor have increased rather steadily for the last 30 years and, in fact, the poverty report has not accurately reflected their living conditions, really, for several decades. >>stuart: i understand today the federal government says 14 percent of the population lives in poverty and that is roughly the same as it was back in 1966 before the great society programs. but that, doesn't that lock at a monetary thing?
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>>guest: part of the reason when you look at the living conditions of 43 million the census says are "poor," in fact, they have all these modern conveniences if you ask them, did your family have enough food to eat at all times during the lat year, the overwhelming majority will say "yes," and if you ask, were you able to meet any medical needs you had, they will say "yes," and the typical poor family in the united states lives in a house or apartment and has pore living space than the average european, not a poor european, but the average frenchman or the average german. so, in fact, there really is not any connection between the government's identification of poor people and the actual living standard, and the typical american. when americans hear the word poverty he is anything of someone who does not have anything food to eat or possibly homeless. not true. >>stuart: i remember in the last few years being told that something like twelve percent of
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the children in america go to bed hungry at night. you saying that is not accurate. >>guest: that is absolute lie, it is taken from an agriculture report. that shows that maybe 2 percent of children at some point in the year would go do bed hungry and it is just not true. it is a form of exaggeration. let me say i have great deal of sympathy though the children that go do bed hungry, one in five poor families does struggle at some point in the year to have enough food to put on the table and i have sympathy for those people, too, and they are of a concern. but, it doesn't do us any good to grossly exaggerate and misrepresent the living conditions of the overwhelming bulk of the 40 million people that are supposed to be poor. >>stuart: very interesting, thank you, sir. and now, here is what is coming up. >> the government wants you to
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get out of debts then you should get out of debt. >>stuart: should a member of congress lecture the american people about their spending habits. ♪ [ female announcer ] around the globe, the people of boeing are working together -- to bring us together. that's why we're here. ♪ .
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>>stuart: apple is selling more than 20 million iphones and 9 million ipads and four million macs but shares off a fraction in after hours trading. you are going to look at capitol hill where a vote on cut, cap and balance is hours away. but president obama is saying he would veto that republican-backed plan that raises the debt ceiling by $2.4 trillion and save the country from default. the president new locking to
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restart doubt talks at the white house and he is touting the gang of six plan. and now, my reporter says america's patience is wearing thin from the tea party group. i have to and you about the gang of six plan. senator coburn explained it on the program and he said, look, they want to consolidate income tax rates interest three lower brackets and lower taxes on corporate america. i would have thought that a conservative would get behind that plan. >>reporter: well, i applaud him for that and it is wonderful thing to do but there are a lot of problems from the gang of six plan. one is that it will only reduce the deficit by $1.7 trillion over 10 years. that is what the c.b.o. scores it at. >>stuart: senator coburn is using $3.7 trillion over 10 years net-net when you fatter
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the increased revenues from lower tax rates, and $500 billion worth of idea spending cuts and more immediately after this. >>guest: senator coburn is a politician. i appreciate what he is saying but congressional budget office is scoring it at $2 trillion. it is not enough. in cap and balance, we will cut the deficit in half by fiscal year 2012, that is the right thing to do and it is what we need and puts in spending accountability that anyone can put around without going back to the people and along with the balance the budget and that has to be part of it. >>stuart: but cut, cap and balance will probably pass in the house of representatives on that vet but it will surveil in the senate, and it would be vottoed by the president. i don't anybody who says that this cut, cap and balance is going to happen. it is largely a symbol. >>guest: why think anything is symbolic because why have a crystal ball. i am always hope will our
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politicians regardless of party do what is right. i understand the pent you trying to make and i don't shuffle the deck, get this passed and go back and see what the senate does. see what plan they put forth. the gang of six plan, i want did look at the whole thing, but right now it is really underwhelming. and a lot is contingent on "reforming social security." and everybody talks about it but not history of this country could you find me a politician that put forth a plan to "reform social security," and it is based on every 75 years so you have to do a check of social security so my grandchild, they are going to have a problem with social security? the reason i like cut, cap and balance and why politicians ought to look at it, it does address the systematic problems with our entitlement program so we can help the needy. >>stuart: speaker bane said after the release of some o the elements of the plan said our focus is cut, cap and balance legislation and you, i believe,
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are holding republicans in the house, and their feet is being held to the fire, i believe; that correct? that is correct. the most direct representation of the people is the people's house of representatives, the united states congress. we sent them down with a mandate and the united states people had a mandate to do it. the west thing they can do is go with the mcconnell plan which creeds their constitutional authority which they cannot do. you cannot give power to the president, it is outside the balance of their constitutional duty. that ought to be off 9 duty. >>stuart: the vote an hour and we believe, and i am sure you will much what it closely. is this democratic congressman blaming american people for the in addition's debt mess? we will ask him.
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i've got to talk to you the american people. you have to act, too. you have to take responsibility. you want this government to get out of debt? you get out of debt personally. stop the spending. stop the borrowing. start overconsumption, buying things that you don't need with money that you don't have. that's robbing you and your family of a future. it's robbing this country out of jobs. i am going to ask every american right now. get off your credit cards, cut them up. free yourselves. free yourselves. >> well, a dramatic plea to control spending from democratic congressman handson clarke today but it wasn't directed to his colleagues in congress. it was directed to the american people. congressman from michigan joins me now. congressman, i watched that. powerful stuff. you seem to be suggesting that the american people responsible for our nation's debt. >> it's congress. congress needs to cut the real
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debt into burdening people. it's not necessarily the federal debt but it's mortgages, student loan, credit card debt. that is crushing the american public. if we cut the debt and ask them to be debt-free. so quit spending money you don't have and cut up your credit cards because that action along with congress for giving certain student loans, cutting mortgages down to the value of our homes, they could free up money americans can invest and support employers to free up jobs. here is my point. >> that confuses personal debt on credit cards, mortgages, college. that confuses that debt at the personal level and blames the individual for that debt. it confuses it with the national debt. this is essentially politically driven. >> no. in order for our economy to
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turn around, create jobs, we have to free people's money up. right now, people don't have jobs. if they have jobs they are paying out money to creditors. congress is responsible and lacks regulation to allow financial institutions to put people in a lot of this debt, especially with the adjustable rate mortgages. i'm saying congress, take action now and help cult the most important debt which is reducing mortgage debt. also. >> you want congress to say you're right, you don't owe -- [ overtalk ] >> what you want is for congress to say right, you don't have a mortgage any longer. it's wiped out. then thebacks take loss, the government takes a loss? >> no, no. i'm not saying we wipe out the mortgages. by point is this. i'm trying to work something out with the members of congress that as we work to avoid government default, i want to us work to make sure americans don't continue to default on their own debt. this country is only strong not because of the government
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but because of the american people. >> do you think we spend too much? >> we've got to be responsible on how we spend our tax dollars and make sure that the american people have money to invest in our economy. that's how you make the country strong. >> are we irresponsible with our own personal money? are we? >> stop borrowing, only pay cash, spend within your means and the government has to do the same and the government should also help americans get out of debt. that is the main debt. that is how we liberate -- >> that resonates. democrat handsen clarke, thank you for joining us. >> take care. today kick off the first of several recall election in wisconsin over the heated budget battle in one hour on fbn, exclusive chat with the man spearheading the battle, republican governor scott walker. karl rove my special guest tomorrow morning on fbn at 9:20. if you don't get it. >> demand it! >> in three on